COGTA defies order to pay over R9m

The Department of Cooperative Governance and Traditional Affairs (COGTA) is under fire for defying a court order to pay over R9 million to the Insika Foundation, one of its former implementing agents in the Community Work Programme (CWP).

Legal experts now say that key department leaders — including Minister V.K. Hlabisa, Director-General Mbulelo Ntshangama, Deputy Director-General Pankie Matomela, and CWP Finance Authority Mawande Skenjana are complicit in contempt of court.

Despite a binding High Court ruling and a failed appeal attempt, the Department has refused to pay the money owed, effectively collapsing the Insika Foundation and severely disrupting a programme that supports thousands of vulnerable South Africans.

Court Victory, Government Defiance

Insika Foundation approached the Gauteng Division of the High Court in 2024, seeking a ‘mandamus’ — a court order compelling COGTA to pay R9,291,633.42 for services delivered in April 2024. The Court granted the order on 12 July 2024. COGTA then tried to appeal but was dismissed with costs on 5 November 2024.

The Court’s ruling was clear: the Department must pay Insika with interest and attorney-client scale legal fees. Yet, the Department, led by DG Mbulelo Ntshangama, has refused to comply. Despite follow-ups and official correspondence to the Minister and his team, Insika has received no payment and no communication.

This non-compliance puts COGTA in direct contempt of court, a serious legal offence that undermines the rule of law.

Minister and Top Officials Now Complicit

The blame now falls squarely on the leadership of the Department. Minister V.K. Hlabisa – Politically responsible and repeatedly warned about the Department’s legal defiance.

DG Mbulelo Ntshangama – The accounting officer, legally obligated to ensure compliance with court orders and fiscal responsibility, DDG Pankie Matomela – Head of the Community Work Programme, responsible for oversight and implementation and Mawande Skenjana** – CWP Finance Authority, tasked with ensuring payment processing and financial accountability.

“These officials are not just negligent — they are actively violating a court order,” said constitutional law analyst Adv. Thando Lekganyane. “This opens them up to personal liability and possible criminal charges.”

Collapse of Insika Foundation and CWP Fallout

The Department’s unlawful refusal to pay has financially destroyed the Insika Foundation, a non-profit that delivered critical community work services for COGTA. Unable to pay staff or continue operations, the organisation has shut down its work, leaving thousands of CWP participants unpaid, unsupported, and in crisis.

“We’ve followed the law. We won in court. Yet the government is treating us like criminals,” said Insika CEO Ziphozethu Busisiwe Matheniwa. “Their refusal to pay has collapsed our business and left entire communities abandoned.”

This isn’t an isolated incident. Insika’s experience reflects a broader pattern where small contractors and non-profits collapse after doing legitimate business with the government, only to be ignored or financially strangled when payment is due.

CWP in Freefall: Chaos and Confusion

Following the collapse of service providers like Insika, COGTA opted to “insource” the CWP instead of renewing contracts. But internal documents show the Department was unprepared. Contracts with financial administrators and site management staff are set to expire in March 2025, with no clear plan for extension, recruitment, or budget allocation.

Although the Department has requested contract extensions through DDG Matomela and Finance Authority Skenjana, delays and dysfunction persist. There is no operational clarity, and site-level staff have reported missed payments, poor communication, and a total lack of support.

Legal Action Looms

Insika has now signalled its intention to pursue further legal relief, including a Personal costs order for failure to comply with court rulings and a formal complaint to Parliament and the Public Protector.

“This isn’t just about money anymore,” said Matheniwa. “It’s about the government’s duty to respect the law — and the people who serve the country.”

A Government Breaking Its Own Laws

As communities go without support and legitimate service providers collapse, the silence from COGTA’s leadership is deafening. 

For Insika Foundation and the thousands of CWP participants depending on this programme, the damage is already done. And unless the Department reverses course, the constitutional crisis may only deepen.